ASP.NET Contracting - Pros and Cons of being an ASP.NET Contractor

I have been a Web Application Development Contractor since 1999, first working on site for Sprint and then Hallmark. I was then contacted by a client in California to develop a website in a 100% telecommuting capacity. I have worked a total of 17+ years telecommuting for clients throughout the United States. Of course, contracting doesn't mean you will work at home. Most contractors work on site. Today, I'm going to discuss some of the benefits versus challenges of being a contractor.

1) You always risk the potential loss of income between contracts: Unless you subcontract through an agency, most contract positions last 6-12 months and then you're out of work unless you or your agency can immediately find you another job. Some agencies will pay you a "bench" fee while they find you another job; that is if they deem you are valuable enough to keep around.

After leaving Hallmark in 1999, I have worked as an independent contractor and when my contracts end, I am responsible for finding another client. Fortunately, God has blessed and I typically have someone contact me via email the last week of my contract, asking if I'm available for a new position.

Two years ago I was on the bench for 3 months when a six month contract turned into two months and another company kept stringing me along saying, "In two more weeks..." every two weeks! LOL. But even that was in God's plan, because I was then hired to contract for the GSA, which pays well and has lasted nearly two years, and I telecommute!

2) Typically there are No Benefits: Unless you work as a sub-contractor, you can count on no benefits, such as no health insurance and no vacations. Health insurance isn't a concern if you have insurance through your spouse's employer.

Our family hasn't had a vacation since I was pregnant with our 17 year old. We have had a few 2-day vacations, but no real vacations. The problem with planning for a vacation is that when you are contracting, your company does NOT want you taking off for a week or more to go on vacation. They didn't hire you for six months just to have you leave. Then when you are between jobs, you don't want to spend your money on a vacation and risk needing it for food and groceries. So count on no vacations unless you can put away six month's salary in savings and feel confident that when you get back, you'll find another job soon.

Optionally, you can ask the future employer if they can wait a few weeks before you start. Typically, they want you now. And typically, to plan a really nice vacation and get bargain deals on flights and hotels, you have to plan well in advance.

3) You are typically responsible for your own training: Most employers expect you to know what they've hired you to do and don't offer on-the-job training as they do with their full-time employees. Therefore, after your 8 hour day, plan to spend some evenings and weekends keeping up with newer technologies so that when your contract ends, you will be able to apply to jobs that require the latest technologies. Permanent employees can get by with just knowing what their employer requires of them to get the job done. But as a contractor, you are expected to know everything, and if you don't, you won't be getting many jobs, if any.

I spend evenings and weekends learning the latest .NET technologies. I typically use the job boards to find out what types of skills employers are requiring for contractors. Then I get the latest books through interlibrary loan (they'll find you a book from all over the United States, so you don't have to read out-dated material), and I'll read it in the evening or on Sundays. Then I'll create a working project utilizing that technology so that I can hit the ground running on any new potential contracts. If I can work it into my existing contract position, I utilize the technology on the job as well.

4) You must pay self-employment taxes and quarterly taxes: Depending on if you subcontract and what your recruiting firm provides, you may be responsible for your own self-employment taxes and will need to plan on paying taxes quarterly and setting aside money for those taxes. If you are receiving a W-2, taxes are taken out by the employer, but if you are on 1099, you are responsible for making your own tax payments.

5) You risk having deadbeat clients: Fortunately, most of my clients have paid me and paid me on time. One client was always very slow at paying and I had to constantly ask. Another paid me slowly for several months, and then one month kept saying the check was in the mail while I continued to work. The check was never in the mail and I never did get paid for the last month of work for him. So it can be a risk. Since that experience, I require all new clients pay a $5000 retainer fee up front, unless they are a major corporation.

So why would someone want to become a self-employed contractor?

1) The boss is great. :)

2) Working full-time on the same job with the same technology for years can seem stagnating. If you want to be challenged and always work on and learn the newest technologies, then contracting can provide you that opportunity.

3) If you get stuck on a job where there is a co-worker or boss who is making your life miserable, you can rest assured that the contract will end in a few months and you can move on. So it's easier putting up with the politics.

4) Even with self-employment taxes, no benefits, etc., contracting can typically pay better than being a permanent full-time employee. There are many risks, but if you're good at socking away your excess money into savings, if you are a hard-worker and self-motivated, contracting can be very rewarding.

5) You can make long-term friendships with many clients. Nearly all of my clients have come back to me for contract renewals, additional contracts, or small tasks for weekend work. So once you build up a client base, you can have repeat business.

If you have further questions or comments to share about ASP.NET Contracting, please add your comments below.